For many years my business was forced to fight a legal battle. To my dismay we lost and a judgment was rendered. I owned and operated a Sub-S Corporation located in Wyoming. Trying to satisfy the judgment we offered the only assest of value, our company inventory. The judgment was in the amount of approximately $21,000.00 and the inventory was valued at approximately $70,000.00 our cost. Several years have past since possession of these goods were taken and to date we have not heard or received anything as to the status of the judgment or an acknowledgment of inventory received.
In good faith we attempted to satisfy this judgement, releasing a substantial amount of company assets and costing us to close our doors. I am afraid that because there has been nothing documented in regard to receiving this inventory, the possibly that in the future they may attempt collections again. I would like to avoid any more problems and wondered if sending them 1099 might offer us some protection. This entire situation has been a costly legal nightmare that I paid for dearly in the loss of my company. I hope that a 1099 might provide us some useful defence if needed, as it is obvious in the inventory figures reported to the IRS. I asked my accountatnt abount sending a 1099 and she suggested I talk with an attorney.